Companhia Siderúrgica Nacional (SID) AI Stock Analysis

• Market Cap: $1.80B
• Dividend Yield: 16.63%
• Average Volume (3M): 3.17M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.07
• Revenue Growth: -10.77%
• EPS Growth: -191.87%
• Country: US
• Employees: 24,924
• Sector: Basic Materials
• Sector Strength: 57
• Industry: Steel
• EPS (TTM): 0.02
• Shares Outstanding: 1,326,094,000
• 10 Day Avg. Volume: 3,066,177
• 30 Day Avg. Volume: 3,168,182
• PEG Ratio: -0.01
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 0.27
• P/FCF Ratio: 3.75
• Enterprise Value/Market Cap: 4.74
• Enterprise Value/Revenue: 0.19
• Enterprise Value/Gross Profit: 0.72
• Enterprise Value/Ebitda: 1.04
• 1Y Price Target: $1.50
• Price Target Upside: 8.70% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 50 Neutral
• Price Target: $1.50 ▲(8.70% Upside)

Companhia Siderúrgica Nacional faces significant financial and technical challenges, with high leverage and negative net income impacting its financial health. However, operational improvements and a high dividend yield offer some positive aspects. While the earnings call provided a boost with strategic progress and debt reduction, the overall outlook remains cautious due to bearish technical signals and ongoing profitability issues.

Companhia Siderúrgica Nacional Business Overview & Revenue Model

Company Description

Companhia Siderúrgica Nacional operates as an integrated steel producer in Brazil and Latin America. It operates in five segments: Steel, Mining, Logistics, Energy, and Cement. The company offers flat steel products, such as high, medium, low carbon, micro-alloyed, ultra-low-carbon, and interstitial free slabs; hot-rolled products, including heavy and light-gauge hot-rolled coils and sheets; cold-rolled products comprising cold-rolled coils and sheets; galvanized products; tin mill products that consist of flat-rolled low-carbon steel coils or sheets; and profiles, channels, UPE sections, and steel sleepers for the distribution, packaging, automotive, home appliance, and construction industries. It primarily explores for iron ore reserves at Casa de Pedra and Engenho mines located in the city of Congonhas; and limestone and dolomite at the Bocaina mine located in the city of Arcos in the state of Minas Gerais, Brazil, as well as produces tin. In addition, the company operates railway and port facilities; produces and sells cement to construction material stores, home centers, concrete producers, construction companies, mortar industries, and cement artifact producers; and generates electric power from its thermoelectric co-generation and hydroelectric power plants. It also exports its products. The company was incorporated in 1941 and is headquartered in São Paulo, Brazil. Companhia Siderúrgica Nacional operates as a subsidiary of Vicunha Aços S.A.

How the Company Makes Money

Companhia Siderúrgica Nacional generates revenue through multiple streams. The primary source of income is the production and sale of steel products, including flat and long steel, which are supplied to industries like automotive and construction. The company also profits from its mining operations by extracting and selling iron ore, a crucial raw material for steel production. Additionally, SID has diversified into logistics, providing railway and port services that support its mining and steel activities. Its cement division contributes to earnings by utilizing slag, a byproduct of steel production, to manufacture cement. Lastly, the energy segment helps reduce operational costs and provides additional revenue through the generation and sale of electric power. Strategic partnerships and investments in infrastructure and technology also play a significant role in enhancing the company's profitability.

Companhia Siderúrgica Nacional Financial Statement Overview

Summary

Companhia Siderúrgica Nacional's financial performance is mixed with significant challenges. The income statement shows declining revenue and a negative net income, reflecting profitability issues. The balance sheet reveals high leverage with a debt-to-equity ratio of 4.14, suggesting financial risk. However, positive operating cash flow indicates some resilience, despite free cash flow pressures.

Income Statement

The income statement shows a decline in revenue from the previous periods with a negative net income. The gross profit margin for the TTM period is 26.7%, while the net profit margin is -4.9%, indicating a challenging operational environment. EBIT and EBITDA margins are at 9.6% and 17.9% respectively, showing some operational efficiency, but not enough to offset the losses. Continued negative net income highlights profitability issues.

Balance Sheet

The balance sheet reflects a high debt-to-equity ratio of 4.14, indicating significant leverage which may pose risks in volatile markets. Stockholders' equity as a percentage of total assets is 13.1%, suggesting moderate financial stability. The return on equity is not calculable due to negative net income, showing a need for improvement in generating shareholder returns.

Cash Flow

Operating cash flow is positive at 8.1 billion, but free cash flow has seen a decline compared to the previous year, indicating pressure on liquidity. The operating cash flow to net income ratio is not meaningful due to negative net income. The company has managed to maintain some cash flow strength despite overall profitability challenges.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	44.69B	43.69B	45.44B	44.36B	47.91B	30.06B
Gross Profit	11.78B	11.70B	11.30B	13.31B	22.07B	10.94B
EBITDA	8.23B	7.28B	8.58B	10.07B	23.08B	9.69B
Net Income	-2.34B	-2.59B	-318.21M	2.17B	12.26B	3.79B
Balance Sheet
Total Assets	101.07B	103.91B	91.53B	85.35B	79.38B	63.00B
Cash, Cash Equivalents and Short-Term Investments	19.16B	24.22B	17.55B	13.45B	19.30B	13.73B
Total Debt	52.64B	57.75B	45.59B	41.61B	33.12B	35.80B
Total Liabilities	83.43B	88.45B	71.84B	63.54B	56.00B	51.75B
Stockholders Equity	14.69B	12.27B	17.50B	19.49B	20.31B	9.91B
Cash Flow
Free Cash Flow	-211.06M	3.16B	2.88B	-3.33B	13.57B	7.89B
Operating Cash Flow	5.61B	8.65B	7.29B	2.04B	16.43B	9.58B
Investing Cash Flow	-1.76B	-1.12B	-4.59B	-11.45B	447.93M	-1.86B
Financing Cash Flow	-1.02B	-103.83M	1.32B	4.75B	-8.53B	1.19B

Companhia Siderúrgica Nacional Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.38
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SID, the sentiment is Negative. The current price of 1.38 is below the 20-day moving average (MA) of 1.45, below the 50-day MA of 1.46, and below the 200-day MA of 1.60, indicating a bearish trend. The MACD of -0.03 indicates Positive momentum. The RSI at 43.81 is Neutral, neither overbought nor oversold. The STOCH value of 24.58 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SID.

Companhia Siderúrgica Nacional Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CMC	71 Outperform	$6.05B	174.09	0.88%	1.33%	-5.64%	-93.26%
TX	70 Neutral	$6.28B	10.74	4.89%	8.44%	-10.20%	-152.18%
SIM	68 Neutral	$4.74B	13.15	10.49%	―	-18.58%	-35.32%
GGB	66 Neutral	$5.83B	10.66	5.77%	3.56%	-6.55%	-37.93%
Sector *	61 Neutral	$9.73B	6.73	-0.14%	3.11%	2.72%	-42.86%
CLF	57 Neutral	$4.73B	―	-25.79%	―	-12.14%	-4329.00%
SID	50 Neutral	$1.80B	―	-15.57%	16.63%	-10.77%	-191.87%